For Rs 6,000-crore IPO, Gland Pharma is authorised by Sebi for the first listing of an Indian company with Chinese

    For Rs 6,000-crore IPO, Gland Pharma is authorised by Sebi for the first listing of an Indian company with Chinese

    The IPO mixes primary and secondary issue of shares, attributable to diluted shares, with both the Chinese Company Fosun and the founders of Gland Pharma. In November 2020 Gland Pharma is scheduled to launch the IPO

    The main node was received by the Sebi market regulator to launch an initial public offer (IPO) by Gland Pharma, which is majority-owned by China Fosun Pharmaceutical (Fosun) to raise up to Rs 6,000 crore, according to Moneycontrol.

    For Rs 6,000-crore IPO, Gland Pharma is authorised by Sebi for the first listing of an Indian company with Chinese

    If the plans to list the injectable medicinal product based in Hyderabad were successful, an Indian company with a Chinese parent will make the first big IPO.

    The Securities and Exchange Board of India ( Sebi) is entering a thronging process in its pharmaceutical valuations and frosty diplomatic relations between India and China, which resulted in casualties on either side as a result of a military aggression in East Ladakh earlier this year.

    In recent months, a range of IPOs was launched. However, no pharmaceutical company has this year listed Indian scholarships. More than three years ago in June 2017, an Indian medicinal producer, Eris Lifesciences, conducted the last IPO.

    Moneycontrol initially announced on 11 July 2020 that Gland Pharma had submitted the draught red herring prospectus for the proposed Intergovernmental Panel with Sebi. Earlier, as part of preliminary preparations on July 19th, 2019, Gland Pharma was also the first paper to mention investment banking bankers.

    “Sebi’s final comments came earlier this week, and the firm has the regulator’s nod. An updated offer document with input from Sebi will be submitted shortly and the current factual status. The RHP is then sent to RoC, “one of the people listed above said.

    This was verified by another person with his direct acquaintance.

    “The pharmaceutical sector is currently well-equipped and Gland Pharma wishes to initiate the IPO at the latest. The business might consider launching an IPO in November based on feedback from the market and investors, but no final call has yet been made.

    Following Sebi’s DRHP analysis and comment, Gland Pharma has an IPO launch window of one year.

    Both three people talked about anonymity with Moneycontrol. Moneycontrol was unable to communicate immediately, waiting for your response in an email question with Fosun and Gland Pharma. As soon as we hear from them this article will be changed.

    The IPO is a blend of main and secondary shares that are to be diluted in the issue with both the Fosun Party and the Gland Pharma founders. For its Indian activities, CAPEX would use much of the IPO’s proceeds and working capital. The deal could include a new problem of up to Rs 1,250 crore and an offer to sell up to Rs 4,750 crore.

    The commercial bankers who work on the issue are Citi, Kotak Mahindra Finance, Nomura and Haitong Securities. Cyril Amarchand Mangaldas is the law firm that advises the promoters to Gland Pharma, Khaitan and Co. and S&R Associate advises commercial bankers.

    Gland Pharma for a closer look

    In October 2017, Hong Kong-listed Fosun bought about 74% of Gland Pharma and offered exits to private equity company KKR, for around $1.09 billion. Most of the remaining shares remained in the company’s Board after the contract with the founding promoters.

    Gland Pharma has been founded by PVN Raju in 1978 as a pure-playing generic injectable drug company. Dr Ravi Penmetsa, Vice-President and Managing Director of the company since 1999, assumed a consultative position to support the management in 2019.

    At present Gland is headed by Srinivas Sadu MD and CEO. The business derives a significant proportion of its turnover from the US and European markets. In India, it had developed Heparin technology (an anti-coagulant used during operations and the treatment of heart attacks).

    The company has 7 factories: Hyderabad and Visakhapatnam. Four factories. In a combination of delivery systems, including Liquid vipers, Lyophilized vials, prepared syringes, ampoules, sackage, and drops, Gland Pharma has built a range of products across a number of therapeutic segments such as anti-diabetic, anti-infective, anti-malaria, anti-neoplastic, blood-related, cardiac, gastrointestinal and hormonal.

    It sells its goods in over 60 countries, including the United States, Europe, Canada, Australia, India and the rest of the world, mostly on a business-by-business model (B2B). As of 31 March 2020, Gland Pharma’s facilities in India employed 3,791 people.

    The production facilities of Gland Pharma have been licenced by U.S. Medicinal Products Regulatory Agency (UK MHRA) and by the U. S. Food and Drug Administration (USFDA).

    “In 2017, Gland pharma was acquired by the Company, benefitting from the growth of major products including vancomycin, enoxaparin injection, caspofungin and a 26.62% rise in sales compared with 2017 in 2018. The net profit increased 39.92% YY,” says Fosun Pharma’s 2018 Annual Report.

    Frank Yao, Co-Chairman of Fosun Pharma told Moneycontrol on 28 February 2019 that Gland Pharma’s integration process with Fosun has ended and that the firm aims to expand its production base and add more products.

    For Rs 6,000-crore IPO, Gland Pharma is authorised by Sebi for the first listing of an Indian company with Chinese

    Rajat Singh
    A Bioinformatics Masters degree from the G.N Khalsa Science and Commerce College (Mumbai). Blogger by choice and an enthusiastic person with a technical background and passion.

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